Technical outlook and chart setups:
The EUR/JPY pair has sharply bounced back after hitting a low of 122.40 yesterday. The pair is trading at 123.80 now, and it looks like the pair has reached a meaningful low. The pair might have completed a wave 5 drop from the level of 141.00 through 122.40 levels, as depicted with arrows here. The most probable move from here should be a rally unfolding at least towards 126.20 levels. The pair is beginning to inch higher at this moment and is now trading at 123.94. Hence it is recommended to remain long now, with risk at 122.00. Immediate support is seen at the level of 122.40, while resistance is seen at 124.60.
Remain long now with stop at 122.00, a target is open.